One big difference between tariffs and quotas is that tariffs
a. raise the price of a good while quotas lower it
b. generate tax revenues while quotas do not
c. stimulate international trade while quotas inhibit it
d. hurt domestic producers while quotas help them
e. generate the same outcome as free trade while quotas do not
B
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The graph of two variables, x and y, is a horizontal line. This result indicates that x and y are
A) positively related. B) negatively related. C) not related. D) falsely related.
A private good is ________ and ________
A) rival; excludable B) nonrival; excludable C) rival; nonexcludable D) nonrival; nonexcludable
A popular shoe company has a 'buy one, get one half price' offer in which customers who purchase one pair of shoes can purchase a second pair at half price. This is an example of ________ and is ________.
A) price discrimination; only illegal if the practice substantially lessens competition or tends to create a monopoly B) conditional sales; only illegal if the practice substantially lessens competition or tends to create a monopoly C) price discrimination; always illegal per se D) conditional sales; always illegal per se
The U.S. trade deficit is most likely to be harmful in the future if:
A. U.S. citizens refuse to lend to foreigners as a result of it. B. U.S. citizens continue to accumulate foreign assets. C. U.S. production continues to exceed U.S. consumption. D. the inflow of financial capital associated with the current deficit does not finance productive investment.